No new KYC disclosure norm for jewellery purchase; KYC only for high value cash purchases

By: |
January 08, 2021 6:48 PM

This is a requirement of FATF (Financial Action Task Force) -- the global money laundering and terrorist financing overseer, they said.

FATF is an inter-governmental body that sets international standards aimed to prevent illegal activities on terror funding and money laundering.FATF is an inter-governmental body that sets international standards aimed to prevent illegal activities on terror funding and money laundering.

No new KYC disclosures have been mandated for cash purchase of gold, silver or precious gems and stones and only high-value cash transactions continue to require the filing of documents such as income tax PAN or biometric ID Aadhaar, finance ministry sources said Friday.

Clarifying a December 28, 2020 notification, the Department of Revenue in the ministry said cash purchase of jewellery, bullion and precious gems and stones of value more than Rs 2 lakh is not allowed without KYC in the country for the past few years.

This continues.

The notification issued under PML Act, 2002 on December 28 stated that only persons or entities buying gold, silver, jewellery or precious stones ‘in cash transactions’ worth Rs 10 lakh or above need to fill know your customer or KYC documents.

This is a requirement of FATF (Financial Action Task Force) — the global money laundering and terrorist financing overseer, they said.

FATF is an inter-governmental body that sets international standards aimed to prevent illegal activities on terror funding and money laundering.

India is a member of FATF since 2010.

Since in India, cash purchase of jewellery above Rs 2 lakh is not allowed without KYC, so no new category is created under this notification. However, it is a requirement to be fulfilled under FATF, they said.

Sources said no new category for disclosure has been created through the notification.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
15 mistakes home loan applicants should avoid
2LIC relaxes claim settlement requirements; offices to work five days a week from May 10
3Life insurers’ new business premium up 45% at Rs 9,739 crore in April